NAICOM Urges Insurers to Use Specialized products to address oil, gas operators’ needs
The National Insurance Commission (NAICOM) has urged Insurers to develop specialized products to address the needs of the oil and gas Industry.
NAICOM boss, Mr Sunday Thomas, stated this in his keynote address presented at the Oriental News 2023 Summit held in Lagos.
According to him, there is the urge to intensify the ongoing drive to facilitate platforms that address the demand-supply gap in the oil and gas industry.
At the summit which has a theme; ‘Building Local Content Synergy Between the Oil and Gas and the Insurance Sectors in Nigeria’, Thomas said that steps already taken would address all potential regulatory impediments; support the development of human capacity and ensure technical capacities of insurance suppliers; ensure adequate risk pricing and comprehensive coverages and risk management.
He said “As the regulator, we are committed to creating an enabling environment that will consistently enhance increased capacity of the insurance institutions both financially and technically,” he posited.
He expressed desire for the principles of reciprocity on the part of operators in the oil and gas sector, stressing that one of which is timely compliance with the requirements of the Guidelines jointly issued by the insurance regulator and the Nigerian Content Development and Monitoring Board(NCDMB).
Thomas noted that it is the ultimate goal of NAICOM to see that, following the mandate to develop indigenous capacities to participate in the oil and gas industry, both regulators would by their collaboration, be able to facilitate, promote adequate assessment of needs of the oil and gas industry and influence the behaviour of insurers, reinsurers and brokers in manners that addresses the needs for national growth and development.
He expressed happiness for the privilege to address stakeholders in the oil and gas as well as the insurance sector on the theme, which he said is very crucial to not just the two industries, but the nation as a whole.
He said the drive towards enhancing local content speaks to the long-term plan of the Government burn out of good intention and strategy to grow the economy, develop the Nigerian Industries and her human capital.
“It is worthy to note that prior to the Nigeria Oil and Gas Industry Content Development Act of 2010 (NOGICD ACT), the Insurance Act 2003 made far reaching provisions for the domestication and domiciliation of insurance services in Nigeria.
“In particular Section 65(7) made it compulsory for any property located in Nigeria whether moveable or immovable to be insured with a Nigerian registered insurer.
“Section 67 requires that insurance of all imports into Nigeria must be insured by insurers registered in Nigeria,” he said.
The regulator noted that the historical relationship between both Industries could be traced to the birth of the latter, following the issuance of the NOGICD Act, the Insurance Industry in collaboration with the board brainstormed leading to issuance of the guidelines for oil & gas insurance business issued in 2010 which amongst others, stipulates the roles and responsibilities of insurance institutions in ensuring compliance with local content law, with the primary consideration of ensuring actual exhaustion of available In-Country Insurance Capacity.
